September 27, 2005
QSGI Urges the Public Not to Rely on Leasing Companies to Destroy Sensitive Data after Computer Equipment is Returned
HIGHTSTOWN, NJ—September 27, 2005 – WindsorTech, d/b/a QSGI [PCX: QGI] cautioned Fortune 1000 companies, small business owners and the general public about the data security and compliance risks associated with leasing a computer, and to not become complacent, assuming that the lessors have the responsibility and are taking the proper measures to ensure thorough data destruction after the computer is returned.
Leasing companies typically resell the returned equipment back into the international marketplace, and if not properly and thoroughly audited and erased (not just formatted), they could be exposing tremendous risk to corporations and consumers since the hard drive data can be easily reconstructed with readily available software from the Internet. Sensitive hard drive data that could otherwise be reconstructed includes bank account information, social security numbers, health records, customer records, etc.
In order to provide reliable data destruction and end-of-life IT asset management services, QSGI recommends that companies select a leasing company that can guarantee the following 3 steps are implemented:
1. When retiring IT assets, the optimum means for data destruction calls for no less than a three-time data overwrite, utilizing the standard set forth by the Department of Defense;
2. For public companies, maintain an audit track of the equipment in order to achieve compliance with Sarbanes-Oxley and other regulatory guidelines; and
3. The application should be fully automated, thus eliminating any possibility of human, hardware or software errors.
According to data security and compliance attorney Alan Burger, a partner at the Florida-based law firm of Burger, Trailor & Farmer, P.A., “It is important for the public to be aware of the inherent risks associated with returning used computer equipment to a leasing company without first reviewing the data security procedures of the leasing company. Although leasing may appear an easy solution to shift liability to the leasing company—ultimate liability remains with the company originating the data saved on the hard drive. For this reason, it is imperative that proper outsourcing procedures relating to data destruction are implemented and followed. It is also critical that the company providing data destruction gives proper indemnity and is adequately insured. Without taking these steps, corporations and small businesses that become complacent are exposed to tremendous risk.”
Robert W. Van Hellemont, founder and chief executive officer of the Varilease companies, one of the top 100 equipment leasing companies in North American, stated, “Just as public companies do not audit their own books and records, corporations and leasing companies should partner with a third-party provider, such as QSGI, which can generate a comprehensive, fully-automated audit report, tracking each piece of equipment and documenting that all stored data has been permanently destroyed. Unlike many leasing companies or corporations that attempt these services in-house, the quality of QSGI’s data erasure technology allows them to assume all liability for the disposal of technology assets through their fully automated process. We recommend that all companies and the general public only entrust their data disposal to companies that specialize in this business.”
About WindsorTech
WindsorTech Inc., d/b/a QSGI, manages the information technology (IT) products of Fortune 1000 and government clients, and provides global solutions for meeting its clients' data security and regulatory compliance needs. QSGI offsets its clients' expenses through its value-added remarketing program. Prior to resale, the company utilizes its proprietary Department of Defense (DOD) level certified data sweep to eliminate otherwise recoverable data. QSGI reduces its clients' potential liability, by ensuring regulatory and environmental compliance for IT products. QSGI also maintains and provides services on enterprise-class hardware, including mainframes, midrange servers, tape storage products and disk storage products. Given the sensitive nature of the company's client relationships, it does not provide the names of its clients.
Statements about WindsorTech's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. WindsorTech intends that such forward-looking statements involve risks and uncertainties and are subject to change at any time, and WindsorTech's actual results could differ materially from expected results. WindsorTech undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.
